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Spatial Agglomeration Dynamics

Danny Quah ()

No 3208, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: This Paper develops a model of economic growth and activity locating endogenously on a 3-dimensional featureless global geography. The same economic forces influence simultaneously growth, convergence, and spatial agglomeration and clustering. Economic activity is not concentrated on discrete isolated points but instead a dynamically-fluctuating, smooth spatial distribution. Spatial inequality is a Cass-Koopmans saddlepath, and the global distribution of economic activity converges towards egalitarian growth. Equality is stable but spatial inequality is needed to attain it.

Keywords: Cluster; Continuous space; Convergence; Distribution dynamics; Globalization; Growth; Knowledge; Spatial spillovers; Saddlepath dynamics; Spatial inequality (search for similar items in EconPapers)
JEL-codes: D30 O10 O41 (search for similar items in EconPapers)
Date: 2002-02
New Economics Papers: this item is included in nep-dev, nep-geo and nep-ure
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